Salary Comparison: Latvia vs Lithuania vs Estonia 2025

Understanding salary differences across the Baltic states is crucial for professionals considering relocation or remote work opportunities. This comprehensive guide compares net salaries, tax systems, and cost of living in Latvia, Lithuania, and Estonia for 2025.

Tax Systems Overview

Latvia Tax System 2025

Personal Income Tax: Progressive rates (20%, 23%, 31%)
Employee Social Security: 10.50%
Employer Social Security: 23.59%
Tax-free minimum: €500 per month
Dependent tax relief: €250 per dependent

Lithuania Tax System 2025

Personal Income Tax: 20% (standard) or 32% (for high earners)
Social Insurance (Employee): 19.50%
Social Insurance (Employer): 1.77%
Tax-free allowance: €625 per month (decreases with income)
Additional deductions for dependents available

Estonia Tax System 2025

Personal Income Tax: 20% (flat rate)
Social Tax (Employee): 1.6% (unemployment insurance)
Social Tax (Employer): 33% (social tax) + 0.8% (unemployment insurance)
Tax-free allowance: €654 per month
Simple, flat-rate system with fewer deductions

Net Salary Comparison Examples

Gross Salary: €2,000/month

Latvia: ~€1,480 net (74% of gross)
Lithuania: ~€1,370 net (68.5% of gross)
Estonia: ~€1,470 net (73.5% of gross)

Gross Salary: €3,000/month

Latvia: ~€2,145 net (71.5% of gross)
Lithuania: ~€2,025 net (67.5% of gross)
Estonia: ~€2,270 net (75.7% of gross)

Gross Salary: €5,000/month

Latvia: ~€3,315 net (66.3% of gross)
Lithuania: ~€3,175 net (63.5% of gross)
Estonia: ~€3,870 net (77.4% of gross)

Cost of Living Comparison

Riga, Latvia

1-bedroom apartment (city center): €500-700/month
Monthly public transport pass: €30-35
Meal at mid-range restaurant: €12-18
Groceries (monthly): €250-350
Utilities (monthly): €100-150

Vilnius, Lithuania

1-bedroom apartment (city center): €550-750/month
Monthly public transport pass: €30
Meal at mid-range restaurant: €12-20
Groceries (monthly): €280-380
Utilities (monthly): €110-160

Tallinn, Estonia

1-bedroom apartment (city center): €650-900/month
Monthly public transport pass: €23 (free for residents)
Meal at mid-range restaurant: €15-25
Groceries (monthly): €300-400
Utilities (monthly): €120-180

Key Takeaways

Best for Higher Net Salary:

Estonia generally offers the highest net-to-gross ratio, especially for middle to high earners, thanks to its flat 20% tax rate and minimal employee contributions.

Best for Lower Earners:

Latvia offers better tax reliefs and progressive taxation for lower income earners, with a €500 tax-free minimum and progressive rates starting at 20%.

Best for Cost of Living:

Riga (Latvia) offers the most affordable housing and living costs, while Tallinn is the most expensive. However, Tallinn offers free public transport for residents.

Conclusion

Each Baltic country has its advantages depending on your salary level and lifestyle preferences:

Choose Estonia if you're a high earner prioritizing maximum net salary and digital infrastructure
Choose Latvia if you want a balance of reasonable taxation, lower living costs, and progressive tax benefits
Choose Lithuania if you're looking for a middle ground with growing tech sector opportunities

Use our salary calculator to get exact net salary calculations for your specific situation in all three Baltic countries, or check out our comparison tool to see side-by-side calculations.